The actual financing cost of a U.S. corporation issuing a bond denominated in euros is affected by the euro's value relative to the U.S. dollar during the financing period.

Question

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The value of the euro in relation to the U.S. dollar will impact the cost of borrowing when a U.S. corporation issues a bond denominated in euros. If the euro strengthens against the dollar, the financing cost will be lower, and if the euro weakens relative to the dollar, the financing cost will be higher.

The Actual Financing Cost of a U